Metals Update: Second Quarter 2009Deloitte Corporate Finance LLC |
This quarter’s Metals Update, produced by Deloitte Corporate Finance LLC (DCF), summarizes the most recent transactions along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
This quarter’s highlights include:
- The impact of the financial crisis continued to weigh on the metals sector in Q2, highlighted by lower overall demand, excess global capacity and relatively static pricing throughout the first half of 2009.
- As a result of the financial downturn, M&A activity has been put on the back-burner, as producers and service centers have withdrawn from external activities to focus on short-term liquidity initiatives and to look for opportunities to leverage excess capacity within existing operations.
- Buyers with solid cash positions are expected to gauge when metals sector valuations have leveled-off before making acquisitions. As they return to the market, these buyers are expected to focus their attention on smaller deals and distressed situations to enhance their competitive positions, driving the recovery of M&A within the industry.
Download the Metals Update below.
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Metals Update: Second Quarter 2009
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